Indian IT sector seen to have turned biz facilitator
India”s IT sector is seen as business facilitator. It has moved on from being a “low-cost IT service” to the world to being a “high-value business facilitator”. Consequently, the country can no longer depend on cost advantage alone but look to deliver value, according to VK Mathews, convenor of the IT panel of CII”s Kerala state council.
He was speaking at the CII-Kerala IT department organized India IT Summit. Mr Mathews said the Indian IT sector had contributed more as an “exporting producer of software” during 2000-2009 rather than a consumer of IT.
He said that transformation in IT sector was underlined by MNCs setting up massive offshore centers in India, emergence of big Indian IT companies and hundreds of thousands of university students opting to graduate in IT-related subjects.
He was pointing to the changing trends in the sector and said the role of IT was changing speedy from that of supporting to transforming businesses. Customers want to relate IT with value. Consequently, business has put the responsibility on IT companies to explore, reduce cost of business and manage growth.
Kerala chief minister VS Achuthanandan said the state government planned to invest nearly Rs 2,000 crore during 2009-11 towards infrastructure development at its IT parks, and invited IT companies to participate “in the e-governance journey of the state and help make it a success”.
He said the state government had declared free and open source software as the medium for software application in the state and welcomed companies working in the free and open source domain to make Kerala their base.
The Indian IT industry has come a long way from being body shoppers and providing programming support services to providing end-to-end solutions to clients worldwide. The Indian IT industry, which is known for its best quality in all over the world, has played a key role in putting India on the global map.
According to a report published by NASSCOM, revenue from India”s IT service sector has the potential to touch $225 billion (i.e. revenue from Export and Domestic) by 2020. Addition to this, report says that nearly 80% of the industry”s incremental growth and 50% of total opportunity is expected to come from untapped verticals such as public sector, healthcare, media and utilities and places such as the Gulf, China, Japan, Russia and Brazil.
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